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Related Party Transactions
 9 Months Ended
Sep. 30, 2012
RELATED PARTY TRANSACTION [Abstract]  
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS
The table below presents the transactions between the Company and Watson.
 
Nine Months Ended
September 30,
 
Three Months Ended
September 30,
 
2012
 
2011
 
2012
 
2011
REVENUES
 

 
 

 
 
 
 
Net product revenues
$
3,590,073

 
$
1,513,296

 
$
1,426,890

 
$
574,956

Royalties
2,232,397

 
1,845,154

 
904,839

 
702,336

Amortization of deferred revenue
—

 
16,974,383

 
—

 
—

Milestone payment
—

 
5,000,000

 
—

 
—

Total net revenues
$
5,822,470

 
$
25,332,833

 
$
2,331,729

 
$
1,277,292

 
 
 
 
 
 
 
 
COST OF PRODUCT REVENUES
 

 
 

 
 
 
 
Cost of product revenues
3,263,376

 
1,453,720

 
1,297,043

 
636,232

Gross profit
$
2,559,094

 
$
23,879,113

 
$
1,034,686

 
$
641,060

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable
$
1,622,278

 
$
932,052

 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
17,313

 
$
83,792

 
 
 
 
 
 
 
 
 
 
 
 

The Company has exceeded the cap of $7.0 million by $3.6 million for R&D spending on the PREGNANT study and related Preterm Birth NDA pursuant to the Watson Transactions and has recorded this amount as a reduction of R&D expenses. Watson has paid the Company for $3.6 million of these excess amounts. In the nine months of 2012, Watson was invoiced and paid to the Company $0.4 million for reimbursable R&D expenses. There are no further expenses to be reimbursed by Watson.